Template:2002 ISDA Equity Derivatives Definitions 12.9(b)(vi): Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
No edit summary
 
(3 intermediate revisions by the same user not shown)
Line 1: Line 1:
:{{eqderivprov|12.9(b)(vi)}} If “'''{{eqderivprov|Increased Cost of Hedging}}'''” is specified in the related {{eqderivprov|Confirmation}} to be <br>applicable to a {{eqderivprov|Transaction}}, then upon the occurrence of such an event the {{eqderivprov|Hedging Party}} will <br>give prompt notice to the {{eqderivprov|Non-Hedging Party}} that such increased costs have been incurred and <br>that a {{eqderivprov|Price Adjustment}} will be made to the {{eqderivprov|Transaction}}. The {{eqderivprov|Non-Hedging Party}} shall, within <br>two {{eqderivprov|Scheduled Trading Days}} of receipt of the notice of {{eqderivprov|Increased Cost of Hedging}} and <br>corresponding {{eqderivprov|Price Adjustment}}, notify the {{eqderivprov|Hedging Party}} that it elects to (A) agree to amend the <br>relevant {{eqderivprov|Transaction}} to take into account the {{eqderivprov|Price Adjustment}}, (B) pay the {{eqderivprov|Hedging Party}} an <br>amount determined by the {{eqderivprov|Calculation Agent}} that corresponds to the {{eqderivprov|Price Adjustment}} or (C) <br>terminate the {{eqderivprov|Transaction}} as of that second {{eqderivprov|Scheduled Trading Day}}. If such notice is not given <br>by the end of that second {{eqderivprov|Scheduled Trading Day}}, then the {{eqderivprov|Hedging Party}} may give notice that it <br>elects to terminate the {{eqderivprov|Transaction}}, specifying the date of such termination, which may be the <br>same day that the notice of termination is effective. If either party elects to terminate the <br>{{eqderivprov|Transaction}}, the {{eqderivprov|Determining Party}} will determine the {{eqderivprov|Cancellation Amount}} payable by one party <br>to the other. <br>
::{{eqderivprov|12.9(b)(vi)}} If “'''{{eqderivprov|Increased Cost of Hedging}}'''” is specified in the related {{eqderivprov|Confirmation}} to be applicable to a {{eqderivprov|Transaction}}, then upon the occurrence of such an event the {{eqderivprov|Hedging Party}} will give prompt notice to the {{eqderivprov|Non-Hedging Party}} that such increased costs have been incurred and that a {{eqderivprov|Price Adjustment}} will be made to the {{eqderivprov|Transaction}}. The {{eqderivprov|Non-Hedging Party}} shall, within two {{eqderivprov|Scheduled Trading Days}} of receipt of the notice of {{eqderivprov|Increased Cost of Hedging}} and corresponding {{eqderivprov|Price Adjustment}}, notify the {{eqderivprov|Hedging Party}} that it elects to (A) agree to amend the relevant {{eqderivprov|Transaction}} to take into account the {{eqderivprov|Price Adjustment}}, (B) pay the {{eqderivprov|Hedging Party}} an amount determined by the {{eqderivprov|Calculation Agent}} that corresponds to the {{eqderivprov|Price Adjustment}} or (C) terminate the {{eqderivprov|Transaction}} as of that second {{eqderivprov|Scheduled Trading Day}}. If such notice is not given by the end of that second {{eqderivprov|Scheduled Trading Day}}, then the {{eqderivprov|Hedging Party}} may give notice that it elects to terminate the {{eqderivprov|Transaction}}, specifying the date of such termination, which may be the same day that the notice of termination is effective. If either party elects to terminate the {{eqderivprov|Transaction}}, the {{eqderivprov|Determining Party}} will determine the {{eqderivprov|Cancellation Amount}} payable by one party to the other. <br>

Latest revision as of 12:02, 13 September 2018

12.9(b)(vi) If “Increased Cost of Hedging” is specified in the related Confirmation to be applicable to a Transaction, then upon the occurrence of such an event the Hedging Party will give prompt notice to the Non-Hedging Party that such increased costs have been incurred and that a Price Adjustment will be made to the Transaction. The Non-Hedging Party shall, within two Scheduled Trading Days of receipt of the notice of Increased Cost of Hedging and corresponding Price Adjustment, notify the Hedging Party that it elects to (A) agree to amend the relevant Transaction to take into account the Price Adjustment, (B) pay the Hedging Party an amount determined by the Calculation Agent that corresponds to the Price Adjustment or (C) terminate the Transaction as of that second Scheduled Trading Day. If such notice is not given by the end of that second Scheduled Trading Day, then the Hedging Party may give notice that it elects to terminate the Transaction, specifying the date of such termination, which may be the same day that the notice of termination is effective. If either party elects to terminate the Transaction, the Determining Party will determine the Cancellation Amount payable by one party to the other.